Free Elective

Business Reviewer Detailed and Comprehensive Notes for Lessons 4–7

This reviewer consolidates the main concepts, frameworks, processes, comparisons, and computational ideas from Lesson 4: Organizational Planning, Lesson 5: Understanding Marketing and the Marketing Process in the Philippines, Lesson 6: Market Segmentation, Marketing Mix, and the Functions of the 7Ps of Marketing, and Lesson 7: Financial Planning for Your Business. It is designed for classroom review, reporting, recitation, business plan writing, and examination preparation.

1. Big-Picture Overview

These four lessons move from the internal structure of the firm toward the market, then toward the customer, and finally toward the financial discipline needed to sustain the business. Lesson 4 explains how a business organizes itself. Lesson 5 explains what marketing is, what it tries to achieve, and how it operates in the Philippine setting. Lesson 6 moves into execution by showing how firms segment markets and apply the 7Ps of marketing. Lesson 7 shifts the focus to funding, forecasting, startup costs, break-even analysis, and financial statements.
Key Point Core flow of the lessons:

1. Organize the business through planning, structure, goals, roles, and controls.

2. Understand the market through customer needs, competition, and value creation.

3. Target the right segment and apply the right marketing mix.

4. Plan the money side through funding, projections, startup cost analysis, break-even, and financial statements.

2. Lesson 4: Organizational Planning

2.1 Meaning of Organizational Planning

Definition: Organizational planning is the process of defining the company’s reason for existing, setting goals aimed at realizing its potential, and translating those goals into increasingly specific tasks, responsibilities, workflows, and resource allocations. An organizational plan acts as a strategic roadmap. It bridges the company’s broad vision with daily operations. It clarifies who does what, why they do it, how their work connects to the firm’s goals, and how the organization responds when conditions change.

2.2 Why Organizational Planning Matters

Organizational planning matters because businesses do not move forward by accident. They move forward through alignment. When the mission, goals, departments, workflows, budgets, and people are coordinated, the business operates with less confusion and greater discipline.

• Alignment: departments work toward the same direction.

• Clarity: employees know their role and contribution.

• Focus: daily work stays tied to long-term goals.

• Growth: the firm is better positioned for success and profitability.

• Adaptability: the firm becomes more capable of responding to change or crisis.

2.3 Key Components of an Organizational Plan

A solid organizational plan commonly includes the following elements:

1. Mission and Vision - the purpose of the organization and the future it aims to build.

2. Organizational Structure - the reporting lines, legal form, and internal arrangement of authority.

3. Roles and Responsibilities - the duties assigned to positions, teams, and departments.

4. Goals and Objectives - measurable targets tied to the firm’s vision.

5. Strategies and Tactics - broad approaches and more specific action paths.

6. Resource Allocation - assigning people, money, tools, and time.

7. Communication and Culture - protocols, norms, and shared behaviors that shape coordination.

2.4 Four Types of Organizational Planning

The lesson highlights four major types of organizational planning. These should not be treated as isolated boxes. They are connected layers:

2.5 Strategic, Tactical, Operational, and Contingency Planning Explained

2.5.1 Strategic Planning

Strategic planning is the company’s long-range picture. It answers questions like: Where is the business headed? What should it become? What goals matter most? This level usually involves top managers because it requires decisions about direction, priorities, and identity.

2.5.2 Tactical Planning

Tactical planning explains how the strategic plan will be carried out. It usually consists of shorter-term goals, often within a one-year period, and is often handled by middle managers. If strategic planning says “grow revenue,” tactical planning says “launch this campaign, raise this quota, improve this process, and hit this deadline.”

2.5.3 Operational Planning

Operational planning covers the routine, day-to-day activity that turns tactics into action. This includes work schedules, employee procedures, service workflows, documentation standards, and performance targets.

2.5.4 Contingency Planning

Contingency planning prepares the organization for disruptions. It is the backup logic of the firm. If software fails, if a crisis hits supply chains, if key personnel leave, if a disaster interrupts normal activity, contingency plans reduce panic and protect continuity.

2.6 The Five-Step Organizational Planning Process

The lesson presents organizational planning as a cycle rather than a one-shot event. The process can be summarized as follows:

1. Develop the strategic plan

2. Translate the strategic plan into tactical steps

3. Plan daily operations

4. Execute the plans

5. Monitor progress and adjust plans

2.6.1 Step 1: Develop the Strategic Plan

This stage includes reviewing the company’s mission, vision, and values; gathering performance data; conducting a SWOT analysis; and setting big-picture goals.

2.6.2 Step 2: Translate the Strategic Plan into Tactical Steps

At this stage, departments convert the broader goals into measurable short-term actions. Managers define quotas, targets, reviews, and supporting processes. Contingency plans should also begin taking shape here.

2.6.3 Step 3: Plan Daily Operations

The firm now identifies the specific routines and tasks that employees must perform. This stage is close to the ground. It determines how work is actually done.

2.6.4 Step 4: Execute the Plans

Execution is where plans face reality. At this point, operational activities are expected to support tactical goals, and tactical goals are expected to support strategic goals.

2.6.5 Step 5: Monitor Progress and Adjust Plans

Planning without review is just a document. Managers examine outcomes, compare them with targets, submit data-backed reports, and revise the strategic, tactical, or operational plans when needed.
Exam Tip Memory hook: The planning cycle can be remembered as: Strategic → Tactical → Operational → Execution → Monitoring and Adjustment. The sequence matters. Daily work should not float freely. It must descend from strategy and rise back through evaluation.

2.7 Frameworks and Tools Used in Organizational Planning

The lesson mentions several tools used in practice:

• SWOT Analysis - identifies strengths, weaknesses, opportunities, and threats.

• OKRs - objectives and key results for measurable goal-setting.

• Gantt Charts - helps with scheduling and timeline control.

• PESTEL Analysis - examines the external environment.

• Organizational Charts - shows structure and reporting relationships.

2.8 Planning Elements to Include

A complete organizational plan should clearly state:

• goals and objectives,

• action items,

• resources and budget,

• timeline and milestones,

• KPIs or key performance indicators.

Watch Out Common mistake: Students often confuse strategic and tactical. Strategic planning defines the overall direction. Tactical planning translates that direction into department-specific action. Operational planning goes even deeper and covers the actual day-to-day tasks.

3. Lesson 5: Understanding Marketing and the Marketing Process in the Philippines

3.1 What Marketing Is

Definition: Marketing begins with understanding consumer needs and wants, identifying which target markets the organization can serve best, developing a compelling value proposition, attracting customers, and building deep customer relationships that make the brand meaningful in their lives. Marketing is therefore broader than selling. Selling is part of marketing, but marketing starts before the sale and continues after it. It is concerned with value creation, value communication, value delivery, and relationship-building.

3.2 Functions of Marketing

The lesson identifies the following functions of marketing:

1. Selling

2. Advertising

3. Marketing Research

4. Product Planning

5. Pricing

6. Distribution

7. Customer Service

8. Promotions
   These functions show that marketing is both strategic and operational. It involves research, planning, pricing, communication, customer handling, and channel decisions.

3.3 The Strategic 3Cs Concept

One of the most important conceptual frames in the lesson is the 3Cs of Marketing:

1. Company

2. Customers

3. Competition
   The business must consider all three at the same time. A company that studies customers but ignores competitors may lose market share. A company that focuses only on competition but ignores customer needs may sell the wrong value. A company that neglects its own strengths and weaknesses may chase markets it cannot serve profitably.
   Element Main Concern:

• Company: Its strengths, weaknesses, resources, profit requirements, and ability to serve a segment effectively.

• Customers: Their needs, wants, expectations, buying behavior, and willingness to choose the firm.

• Competition: Rival brands, substitutes, market challengers, and the comparative value available in the market.

3.4 Key Objectives of the 3Cs

• Customers: satisfy target customers’ needs, wants, and expectations.

• Competition: outperform rivals and substitutes.

• Company: maintain corporate health and profit.
  A firm that successfully balances these three is described in the lesson as marketing-oriented.

3.5 Input and Output of Marketing

The lesson ties each major element to a key result area:

• Company: Profit

• Customers: Sales

• Competition: Market Share
  This is a useful way to remember how marketing performance is judged.

3.6 Key Result Areas in Marketing

3.6.1 Sales

Sales result from satisfying customer needs and wants. Demand must first be created before selling can scale. The lesson stresses that increased sales may come from higher prices or higher sales volume, although prices can only rise up to the affordability threshold of the target market.

3.6.2 The 4Us of Marketing

To increase sales volume, the lesson presents the 4Us of marketing:

1. New Users - Who uses the product or service?

2. Extended Users - Who else can still use it?

3. New Usage - For what other purpose can it be used?

4. More Usage - When and on what occasions can it be used more often?

3.6.3 Market Share

Market share reflects performance against competition. It is the ratio of the brand’s sales relative to total sales in the market. The lesson notes that consumers ultimately decide the competitive frame, which means marketers must think not only about direct competitors but also about substitutes.

3.6.4 Profit

Profit comes from the excess of sales over cost and expenses. The lesson also stresses a moral warning: profit must go hand in hand with honor. Businesses must not justify profit if the result is social harm.

3.7 Standards of Judging Marketing Effectiveness

Three standards are emphasized:

1. Better Than Before - used in evaluating sales growth relative to the industry growth rate.

2. Better Than Others - used in evaluating market share performance against competition.

3. Better Than Expected - used in evaluating profit performance against the firm’s plans or budget.
   Key Point Interpretation: A business should not settle for activity alone. Marketing must produce outcomes that are improving over time, stronger than rivals, and better than planned expectations.

3.8 Customer Satisfaction and Continuity Marketing

The lesson warns that simply selling a product is not enough. Customer satisfaction and repeat purchasing matter. It introduces the idea of suki or continuity marketing, which points to customer loyalty and repeated patronage. At the same time, the lesson also gives a caution: continuous patronage does not always mean true loyalty. Sometimes customers stay because switching costs are high, not because they are satisfied. This distinction matters in analysis.

3.9 Three Levels of Marketing Activity

The lesson identifies three levels of marketing work:

3.10 Vision, Mission, and Key Factors for Success

• Vision explains the company’s intended future and what it hopes to become.

• Mission explains the company’s present purpose and how it achieves its goals.

• Key Factors for Success (KFS) identify the crucial functions, activities, or conditions that must be managed well to outperform competition. The lesson notes that KFS can guide performance, but it can also trap companies in convention if they become too afraid of innovation.

3.11 Internal and External Analysis

The lesson distinguishes between:

• Strengths and Weaknesses - internal conditions.

• Opportunities and Threats - external conditions.
  A company should not only list these factors. It must actively use strengths, correct weaknesses, capture opportunities, and respond to threats.

3.12 Marketing Strategy and Tactics

Marketing strategy has two interrelated components:

1. Target Market

2. Marketing Mix
   The lesson also highlights several considerations when crafting strategy and tactics:

• target audience,

• brand USP,

• clear objectives,

• proper marketing channels,

• budget,

• competitive landscape,

• market trends,

• continuous monitoring and adaptation.

3.13 The Marketing Process in the Philippines

The marketing process is presented as a sequence of linked activities:

1. analyzing the market,

2. developing a customer-driven strategy,

3. creating a marketing program,

4. building customer relationships,

5. capturing value,

6. understanding local culture and values,

7. utilizing digital marketing effectively,

8. adapting strategies based on performance.

3.13.1 Key Philippine Considerations

The lesson highlights several specific considerations relevant to the Philippine context:

• Cultural sensitivity - marketing must fit Filipino values and communication styles.

• Digital marketing - social media, SEO, and content marketing are highly important.

• Word-of-mouth - recommendations from family and friends are powerful.

• Data-driven decision-making - firms increasingly rely on data to personalize and improve marketing efforts.

3.13.2 Examples of Marketing Tactics in the Philippines

The lesson gives examples such as:

• personalized content,

• social media advertising,

• search engine optimization,

• content marketing,

• pay-per-click advertising,

• broadcast advertising,

• print advertising.
  Exam Tip Fast recall: If asked to explain marketing in the Philippine setting, mention not only the general process but also the local elements: culture, relationships, word-of-mouth, and digital behavior.

4. Lesson 6: Market Segmentation, Marketing Mix, and the Functions of the 7Ps of Marketing

4.1 Market Segmentation

Definition: Market segmentation is the process of dividing a broad market into smaller groups of consumers with similar needs, characteristics, or behaviors so that businesses can design more appropriate strategies for each group. Segmentation helps firms avoid the mistake of treating the whole market as if everyone wants the same thing. It improves targeting, communication, and product design.

4.2 Main Types of Segmentation

4.3 Why Market Segmentation Is Important

• Personalized Marketing - messages become more relevant.

• Improved Product Development - firms better understand segment-specific needs.

• Deeper Customer Understanding - marketers better understand who customers are and how they behave.

• Increased Effectiveness - campaigns become more efficient and persuasive.

• Identification of New Opportunities - niche segments can open new growth paths.

4.4 Marketing Mix: From 4Ps to 7Ps

The lesson explains that the marketing mix originally emphasized the 4Ps: Product, Price, Place, and Promotion. Later, for service-oriented settings, the mix was expanded to 7Ps by adding People, Process, and Physical Evidence.
Key Point Simple distinction: The 4Ps are the classic product-centered mix. The 7Ps extend the framework to better handle services, customer interaction, and delivery environments.

4.5 The 7Ps of Marketing

4.5.1 1. Product

The product refers to the goods or services offered to meet customer needs. It includes design, features, quality, branding, and lifecycle.
Product Development: The lesson presents six stages of product development:

1. Idea generation or ideation

2. Product definition

3. Prototyping

4. Initial design

5. Validation and testing

6. Commercialization
   Product Line: A product line is a group of related products sold under one brand name, often sharing similar functions, prices, and customers.
   Branding: Branding is the process of creating a unique identity for a product, service, or company. The lesson identifies five key elements:

• brand identity,

• brand personality,

• brand positioning,

• brand promise,

• brand equity.
  Branding matters because it creates differentiation, recognition, trust, loyalty, and even premium pricing power.
  Branding Strategies:

• Corporate branding

• Product branding

• Personal branding

• Co-branding

• Rebranding
  Packaging: Packaging is both functional and promotional. It protects the product, improves convenience, communicates information, promotes the brand, and differentiates the offering.
  Types of Packaging:

• Primary packaging

• Secondary packaging

• Tertiary packaging
  Packaging Trends: The lesson notes trends such as minimalist design, sustainability, and smart packaging like QR codes and interactive features.

4.5.2 2. Price

Price is the amount customers pay for the product or service. It is shaped by input costs, manufacturing costs, customer expectations, general price levels, desired profit margins, rival prices, and other external conditions.
Objectives of Pricing:

• Revenue generation

• Market leadership or market rule

• Survival

• Profit maximization

• Attraction and retention of customers
  Pricing Strategies: The lesson includes a broad list of strategies:

• cost-based pricing,

• value-based pricing,

• competition-based pricing,

• economy pricing,

• premium pricing,

• demand-based pricing,

• freemium pricing,

• hourly pricing,

• project-based pricing,

• high-low pricing,

• subscription pricing.

4.5.3 3. Place

Place refers to the distribution channels used to make the product available. It includes retail channels, wholesalers, direct selling, online platforms, logistics, market coverage, and partner networks.
Distribution Strategies: The lesson presents the following:

• intensive distribution,

• selective distribution,

• exclusive distribution,

• direct distribution,

• indirect distribution,

• indirect bundled product distribution,

• indirect integrated product distribution.
  Factors in Distribution Strategy: These include the target audience, product nature, market conditions, company resources, business objectives, competitive landscape, and regulatory environment.

4.5.4 4. Promotion

Promotion consists of communication activities used to inform, persuade, and remind customers. It includes advertising, sales promotion, public relations, and digital marketing.
Sales Promotion: Sales promotion refers to short-term incentives that encourage purchases or support selling. Its objectives include stimulating short-term sales, encouraging trial or repeat purchase, supporting distribution channels, reinforcing advertising or personal selling, and clearing old inventory.
Examples of Sales Promotion Activities: From the lesson, examples include competitions and challenges, product bundles, flash sales, recurring sales actions, free trials, upsells, and shop-and-support campaigns.

4.5.5 5. People

People include all the individuals who influence or deliver the customer experience - employees, managers, salespeople, service staff, and even those involved in recruitment, training, and culture.

4.5.6 6. Process

Process refers to the systems and procedures used to deliver the product or service. It includes efficiency, the customer journey, and service delivery steps.

4.5.7 7. Physical Evidence

Physical evidence refers to the tangible or visible cues that reassure customers about the brand or service. Examples include store design, the website, packaging, receipts, layout, and service ambiance.
Exam Tip Quick recall pattern: If the question asks for the 7Ps, group them mentally into:

• Offer - Product and Price

• Access and Communication - Place and Promotion

• Service Delivery - People, Process, and Physical Evidence

5. Lesson 7: Financial Planning for Your Business

5.1 Why Financial Planning Matters

Definition: Financial planning for a business is the process of identifying funding needs, projecting revenue and expenses, estimating startup costs, evaluating profitability, and preparing financial statements and decision tools that support operations and attract investors or lenders. The lesson opens with a hard truth: starting a business costs money. Funding choices affect not only how the business starts but also how it is structured, governed, and run.

5.2 Ways to Fund a Business

The lesson discusses several major funding options.

5.2.1 Self-Funding

Self-funding or bootstrapping allows the entrepreneur to keep full control, but it also means the risk is concentrated on the owner. The lesson warns that using retirement resources carelessly can lead to penalties or long-run harm.

5.2.2 Venture Capital

Venture capital involves equity financing rather than debt. Venture capitalists normally prefer high-growth companies, accept higher risk, and often expect a board seat or active role in decision-making.
General Venture Capital Process:

1. Find an investor.

2. Share the business plan.

3. Undergo due diligence review.

4. Negotiate the term sheet.

5. Receive the investment, often in rounds.

5.2.3 Crowdfunding

Crowdfunding is attractive for some business models because owners usually keep control and are often not required to repay contributors if the campaign does not succeed. Still, the lesson reminds students to read the legal and financial conditions of each platform carefully.

5.2.4 Small Business Loan

For loans, the lesson emphasizes the need for a business plan, expense sheet, and five-year financial projections. These documents help both the entrepreneur and the lender assess the funding decision.

5.3 The Financial Planning Process

The lesson describes a financial plan as a section of the business plan that demonstrates financial viability by modeling future revenue, expenses, cash flow, and profitability.

5.3.1 Key Components of a Financial Plan

1. Income statement or profit and loss statement

2. Cash flow projection

3. Balance sheet

4. Break-even analysis

5. Capital requirements or use of funds

5.3.2 Steps to Create a Financial Plan

1. Develop sales forecasts.

2. Estimate expenses.

3. Create projections.

4. Analyze the data.

5. Identify financing needs.
   For new businesses, these figures are often educated forecasts based on industry and market research. For existing businesses, historical data should be used.

5.4 Startup Costs

Before a business opens, it already faces bills. This is why startup cost estimation matters.
Why Startup Cost Calculation Matters: It helps the entrepreneur:

• estimate profits,

• conduct break-even analysis,

• secure loans,

• attract investors,

• save money through proper tax handling.
  Typical Startup Cost Categories: The lesson lists common startup expenses such as:

• office space,

• equipment and supplies,

• communications,

• utilities,

• licenses and permits,

• insurance,

• lawyer and accountant,

• inventory,

• employee salaries,

• advertising and marketing,

• market research,

• printed marketing materials,

• website creation.
  
  Steps in Calculating Startup Costs:

1. Identify startup expenses.

2. Estimate the amount of each expense.

3. Add the expenses for a full financial picture.

4. Use the resulting calculations to seek funding.
   One-Time and Monthly Expenses: The lesson distinguishes between:

• One-time expenses - initial outlays like permits, major equipment, and logo design.

• Monthly expenses - recurring items like rent, salaries, and utilities.

5.5 Break-Even Point

Definition: The break-even point is the level of sales at which total revenue equals total cost, meaning the business experiences neither profit nor loss. The lesson emphasizes that break-even analysis is crucial both for new firms and for businesses analyzing survival or turnaround scenarios.

5.5.1 Benefits of Break-Even Analysis

• smarter pricing,

• identification of missing expenses,

• setting revenue targets,

• smarter decisions,

• reduced financial strain,

• stronger case for funding.

5.5.2 Key Terms in Break-Even Analysis

• Fixed Costs - expenses that stay the same regardless of output over a relevant range.

• Variable Costs - expenses that change with production or sales volume.

• Semi-variable Costs - costs containing both fixed and variable components.

• Contribution Margin - selling price per unit minus variable cost per unit.

5.5.3 Break-Even Formula

Break-Even Point in Units = $rac{ ext{Total Fixed Costs}}{ ext{Price per Unit} - ext{Variable Cost per Unit}}$
Contribution Margin = Price per Unit − Variable Cost per Unit
Example: If fixed costs are $10,000$, price per unit is $50$, and variable cost per unit is $30$, then:
Contribution Margin = $50 - 30 = 20$
Break-Even Point = $rac{10,000}{20} = 500$ units
This means the firm must sell $500$ units to cover all costs.

5.6 Financial Statements

Financial statements are formal records that summarize the financial performance and financial position of a company. The lesson focuses on the major statements used in analysis and planning.

5.6.1 Balance Sheet

The balance sheet, also called the statement of financial position, gives a snapshot of assets, liabilities, and equity at a specific point in time.
Formula:
Assets = Liabilities + Equity
Assets: Assets are what the company owns.

• Current Assets - cash and cash equivalents, accounts receivable, inventory, prepaid expenses.

• Non-current Assets - property, plant, and equipment; intangible assets; long-term investments; deferred tax assets.
  Liabilities: Liabilities are the company’s obligations.

• Current Liabilities - accounts payable, short-term debt, accrued expenses, unearned revenue.

• Non-current Liabilities - long-term debt, deferred tax liabilities, pension liabilities, lease liabilities.
  Equity: Equity is the residual value after liabilities are deducted from assets. Examples include common stock, preferred stock, retained earnings, and treasury stock.

5.6.2 Income Statement

The income statement, also called the statement of income, statement of operations, statement of earnings, or profit and loss statement, reports revenues, expenses, gains, losses, and resulting net income over a given period.
Key Components of the Income Statement:

• Revenue

• Cost of goods sold (COGS)

• Gross profit

• Operating expenses

• Net income
  Additional Terms Explained in the Lesson:

• Operating revenues - income from the firm’s main business activities.

• Operating expenses - expenses tied to those activities.

• Operating income - operating revenues minus operating expenses.

• Non-operating income / expenses - results from activities outside the main business, such as investment income or loss on asset sale.

• Income before income tax expense - operating and non-operating results combined before taxes.

• Income tax expense - taxes related to reported earnings.

• Net income - earnings remaining after tax expense.

5.6.3 Comprehensive Income

The lesson also notes that comprehensive income extends beyond traditional net income by including items such as unrealized gains or losses on investments, hedging activity effects, foreign exchange changes, and pension-related adjustments.

5.6.4 Cash Flow Statement

The cash flow statement tracks cash moving into and out of the business. Its main purpose is to show where cash comes from and how it is used. It is grouped into three sections:

1. Operating Activities - cash from daily business operations.

2. Investing Activities - cash used for or received from investments.

3. Financing Activities - cash from borrowing, repaying debt, or issuing stock.

5.6.5 Statement of Shareholders’ Equity

This statement shows how equity changes during the reporting period. It helps explain changes in ownership value through items such as net income, dividends, stock issuances, or stock repurchases.

5.7 Sales Projection

The lesson explains that a sales projection estimates future revenue, often over a 12-month period, using historical data, industry trends, and market analysis. It is important for profitability planning, cash flow management, budgeting, and financing decisions.

5.8 Limitations of Financial Statements

The lesson does not present financial statements as perfect tools. It notes several limitations:

• historical data may not predict the future perfectly,

• non-financial information may be missing,

• inflation is not fully captured,

• reporting periods and assumptions can make comparison difficult.
  Watch Out Critical reminder: A healthy-looking statement does not automatically mean a healthy business. Statements are essential, but they must still be interpreted carefully and in context.

6. Integrated Synthesis of Lessons 4–7

These lessons form a coherent business chain.

1. Lesson 4 explains how the organization is structured and directed.

2. Lesson 5 explains how the organization understands the market, customers, and competition.

3. Lesson 6 explains how the firm narrows the target audience and executes a marketing mix through segmentation and the 7Ps.

4. Lesson 7 explains how the firm funds itself, estimates costs, projects income, and evaluates financial viability.
   A business without organizational planning may act without coherence. A business without marketing may create products no one wants. A business without segmentation and a clear marketing mix may speak to the wrong audience in the wrong way. A business without financial planning may collapse even if demand exists.
   Key Point One-line synthesis: Organization gives the business structure, marketing gives it direction toward customers, the 7Ps give it execution tools, and financial planning gives it sustainability.

7. High-Yield Comparison Tables

7.1 Strategic vs Tactical vs Operational vs Contingency

7.2 3Cs and Their Outputs

7.3 The 7Ps at a Glance

7.4 Major Financial Statements

8. Essential Formulas and Computation Concepts

8.1 Break-Even and Contribution Margin

Contribution Margin = Selling Price per Unit − Variable Cost per Unit
Break-Even Point in Units = $rac{ ext{Total Fixed Costs}}{ ext{Contribution Margin per Unit}}$

8.2 Accounting Equation

Assets = Liabilities + Equity

8.3 Simple Marketing Ratio Idea

Although the lesson does not provide a heavy set of equations for marketing, it does define market share conceptually. A simple way to express it is:
Market Share = $rac{ ext{Brand Sales}}{ ext{Total Market Sales}} imes 100\%$
Exam Tip: Exam note. Even when computation is light, you should still know the logic behind the formulas. Break-even is about zero profit. Contribution margin is what remains from each unit to cover fixed costs. The accounting equation expresses the balance-sheet structure. Market share expresses competitive position.

9. Possible Essay and Recitation Questions

1. Explain the difference between strategic, tactical, operational, and contingency planning.

2. Why is organizational planning important to business alignment and growth?

3. Discuss the 3Cs of marketing and explain how they affect sales, market share, and profit.

4. Why is selling alone not enough to define marketing?

5. Explain the marketing process in the Philippines and identify the role of culture and digital behavior.

6. Define market segmentation and discuss its four main types.

7. Differentiate the classic 4Ps from the expanded 7Ps of marketing.

8. Explain at least five pricing strategies and when they may be appropriate.

9. Compare intensive, selective, and exclusive distribution.

10. What is a break-even point and why is it important in a business plan?

11. Distinguish fixed, variable, and semi-variable costs.

12. Explain the functions of the balance sheet, income statement, cash flow statement, and statement of shareholders’ equity.

10. Ultra-Quick Recall

Lesson 4

• Organizational planning = structure + goals + tasks + resources + adjustment.

• Four types = strategic, tactical, operational, contingency.

• Five-step process = develop, translate, plan daily work, execute, monitor and adjust.

Lesson 5

• Marketing starts with needs, wants, target markets, and value proposition.

• 3Cs = company, customers, competition.

• Key outputs = profit, sales, market share.

• 4Us = new users, extended users, new usage, more usage.

• Philippine context = culture, word-of-mouth, digital marketing, adaptation.

Lesson 6

• Segmentation types = demographic, geographic, psychographic, behavioral.

• Marketing mix = from 4Ps to 7Ps.

• 7Ps = product, price, place, promotion, people, process, physical evidence.

Lesson 7

• Funding options = self-funding, venture capital, crowdfunding, loans.

• Financial plan = income statement, cash flow, balance sheet, break-even, capital needs.

• Break-even formula = fixed costs divided by contribution margin per unit.

• Main statements = balance sheet, income statement, cash flow statement, shareholders’ equity.